Warner Music Group (WMG) earned $1.059 billion from recorded music throughout 2021’s preliminary three months – a determine that represents a 17 p.c uptick from the identical stretch in 2020.
The Large Three report label revealed the performance specifics related to the second quarter of its fiscal yr (masking the three months ending on March thirty first, 2021) right this moment. Warner Music Group achieved whole income of $1.25 billion all through the interval, $1.059 billion of which derived from recorded music, as soon as once more.
Breaking down these improved recorded-music earnings, nearly all of the sum, $756 million, got here from digital sources – a year-over-year improve of $130 million. The entire mirrored “accelerated income development in rising streaming platforms comparable to Fb, TikTok, and Peloton,” per WMG.
Additionally value noting is that bodily gross sales loved a $24 million YoY bump, at $118 million throughout the first three months of 2021. This achieve resulted from “an growing demand for vinyl merchandise in addition to success from new releases together with The Yellow Monkey in Japan, Neil Younger and Fleetwood Mac.”
On the publishing aspect, Warner/Chappell generated $192 million throughout January, February, and March of this yr, up from $166 million throughout the opening quarter of 2020.
Falloffs in publishing revenue deriving from performances ($6 million much less YoY, for $35 million in whole) and mechanical ($3 million much less YoY, for $12 million in whole) have been greater than offset by a $4 million sync-licensing enchancment (totaling $38 million on the quarter) in addition to a $30 million soar in digital-publishing income ($104 million in whole).
New York Metropolis-headquartered Warner Music additionally devoted a portion of the efficiency evaluation to detailing its international-expansion efforts, together with opening a division in Turkey in January of 2020 and a Vietnam department in April of 2020, moreover investing within the Center East’s Rotana Music and establishing Atlantic Information Russia in 2021.
Regardless of reporting improved income and continued digital development, Warner Music Group – listed as WMG on NASDAQ – skilled a 5.67 p.c stock-price falloff throughout right this moment’s buying and selling hours, with shares value $36.09 apiece when the market closed.
This decline might have resulted from the corporate’s heightened monetary obligations, nevertheless, as long-term debt grew by eight p.c throughout the quarter and contributed to a 5 p.c enhance to whole liabilities, which now relaxation at $6.76 billion.
Warner Music – which is formally an investor in virtual-concert platform Wave – final month inked an “progressive podcast growth deal” with Spotify and rolled out a Pan-Asian dance label, Whet Information.
Lastly, Sony Music and Common Music (which can arrive on the inventory market later this yr) reported small digital-driven income positive aspects in their very own latest earnings breakdowns.